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Mexico's state-owned Pemex reported 23 August that a fire at its
Ku-Maloob-Zaap (KMZ) production platform has disrupted operations,
potentially impacting Maya crude loadings.
Pemex CEO Octavio Romero Oropeza reportedly said output from 125
wells in the shallow water complex located in the Campeche Sound in
the Gulf of Mexico is now suspended for a few days due to the fire
on the E-Ku-A2 platform at one of the compression and power
generation units.
About 421,000 b/d of production was immediately impacted, with
the company expected to resume output at some of these 100 odd
wells in the coming days. The death toll from the incident stands
at five. The incident will add to Pemex's woes as it struggles to
raise production from the country's major fields. The KMZ complex
comprises over 200 producing wells.
Output from the project last year averaged 785,000 b/d,
according to Pemex data. Based on Mexico's total crude output of
1.7 million b/d in June, the KMZ project accounts for over 40% of
production. Pemex exports some flagship Maya crude grade from the
Cayo Arcas Terminal in Confidential. Campeche, where the KMZ
complex is served by the FPSO Yuum K'ak' Naab. Maya is a heavy sour
grade with API of 21.5 degrees and sulfur level of more than
3%.
Mexico's seaborne crude exports averaged 1.03 million b/d over
the first seven months of this year, a decline of 9.2% year on
year, data from IHS Markit Commodities at Sea
shows. So far in August, crude seaborne exports from Mexico have
averaged 1.12 million b/d, down from 1.19 million b/d in July.
About 72%, or 800,000 b/d, of August volumes comprise Maya
crude.
In July, Maya exports through various load ports totaled 834,900
b/d. There have so far been 25 Maya cargoes loaded in August,
versus 41 cargoes in July. Of these, nine cargoes have loaded from
Cayo Arcas so far this month, versus 14 cargoes in July, comprising
five VLCCs, seven Aframaxes and two Suezmaxes, according to
Commodities at Sea.
Roughly half of Maya volumes are typically exported to the U.S.
Gulf Coast (PADD 3), and the rest to other global refining hubs.
KMZ output peaked in 2013 at over 850,000 b/d and the group of
fields is in decline. The government had highlighted a raft of new
projects to boost output in the coming years.
Pemex has however been criticized for not investing enough in
upstream exploration to find new reserves at existing projects.
Mexico has cut its targeted output for the medium term to 1.75
million b/d until end 2022, instead of an initial two million
b/d.
